Have Insiders Sold Sunac China Holdings Shares Recently?

We wouldn't blame Sunac China Holdings Limited (HKG:1918) shareholders if they were a little worried about the fact that Hongbin Sun, the Founder & Executive Chairman recently netted about HK$2.4b selling shares at an average price of HK$6.00. That's a big disposal, and it decreased their holding size by 14%, which is notable but not too bad.

View our latest analysis for Sunac China Holdings

The Last 12 Months Of Insider Transactions At Sunac China Holdings

In fact, the recent sale by Hongbin Sun was the biggest sale of Sunac China Holdings shares made by an insider individual in the last twelve months, according to our records. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. It's of some comfort that this sale was conducted at a price well above the current share price, which is HK$1.53. So it is hard to draw any strong conclusion from it.

The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

If you are like me, then you will not want to miss this free list of growing companies that insiders are buying.

Does Sunac China Holdings Boast High Insider Ownership?

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. It's great to see that Sunac China Holdings insiders own 30% of the company, worth about HK$3.9b. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

What Might The Insider Transactions At Sunac China Holdings Tell Us?

An insider sold Sunac China Holdings shares recently, but they didn't buy any. And even if we look at the last year, we didn't see any purchases. While insiders do own a lot of shares in the company (which is good), our analysis of their transactions doesn't make us feel confident about the company. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Sunac China Holdings. Every company has risks, and we've spotted 4 warning signs for Sunac China Holdings (of which 3 don't sit too well with us!) you should know about.

But note: Sunac China Holdings may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE and low debt.

For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We currently account for open market transactions and private dispositions of direct interests only, but not derivative transactions or indirect interests.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.